Start of the depression

Bell work 2/2

• What do you know about the Stock Market in the United States?

p. 29 The Great Depression (1929-1941)

1. Economic Cause

• Too many people buying stocks that they can’t afford (with loans)

• Everyone tries to sell stocks at once• Banks had used $ to invest- they lost cash and

had to close

1. Economic Effect• Vagrant (homeless) kids• Thousands lose jobs/

homes/lifesavings

2. Political Cause• Pres. Hoover was a

conservative (laissez faire=hands off) and didn’t like a lot of gov control of business

• Believed in the American spirit and will to “pull themselves up by the bootstraps”

• High tariffs (tax on imports)=trade war

2. Political effects(don’t copy) President Herbert Hoover declared, "Nobody is actually starving. The

hoboes are better fed than they have ever been.”

• felt that assistance should be handled on a local, voluntary basis. (Churches and businesses offer help)

• Hoover dam- projects to stimulate economy

3. Agricultural Cause

• Over production=low prices AND poor soil

3. Ag. Effect

• loose dirt picked up/blown away from The Dakotas to Texas

• Farmers leave the mid west (called Oakies)

4. Social Causes• Buying on credit (consumerism)• False optimism (thinking everything is ok)

4. Social effects

• Low divorce rate (too expensive)= lots of abandoned families, Low birthrate

• Poor health/nutrition• High crime rate and alcoholism• Escapism- radio, movies, sports

Terms (define and write the letter next to the section of notes it connects to)

A. Lost GenerationB. HoovervillesC. Flagpole sittingD. Installment planE. Dust BowlF. Smoot Hawley Tariff

p. 28 A picture is worth 1000 words

• Divide the page into 4 squares• For each: • 1. Give the source a Title or “caption”• 2. what is says about the era